Many are talking about the S&P 500 recently breaking 1,150.

This was an important technical area for the market to surpass.

However, in a recent article I wrote for the Financial Intelligence Report and in my own writings, I have talked about emerging markets leading the way.

Get David Skarica's Gold Stock Adviser — Click Here Now!

While the S&P remains about 5 percent below its high of the spring and nearly 25 percent lower than its 2007 high (and much lower when adjusted for inflation), emerging markets are booming.

Not only are many emerging markets such as India, Peru, Philippines breaking their highs of the spring but also many are now approaching their all-time highs reached in 2008.

I recently visited South America, Chile, Peru, Panama and Honduras. What I saw was totally the opposite of what is going on in North America: economies and balance sheets are expanding.

After the setback of the 2008 financial crisis, many of these economies are back and growing strong.

Peru reported 11.9 percent GDP growth for the most recent quarter.

Now it is true that the latest run in emerging markets has made them very overbought. However, I feel after a short, sharp pullback, these markets will continue to lead the way while the U.S. market slowly stumbles upward.

About the Author: David Skarica
David Skarica is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes the Gold Stock Adviser. Discover more by Clicking Here Now.